Centre plans ₹37,500 crore push for clean coal tech to cut imports, boost energy security

New Delhi: The Union Cabinet is likely to approve a ₹37,500 crore incentive scheme soon to promote coal gasification projects, aimed at boosting clean energy production and reducing import dependence, sources said on Saturday.

The Coal Ministry has already prepared a Cabinet note on the scheme, which carries a financial outlay of ₹37,500 crore, they added.

Coal gasification converts coal into syngas that can be used to produce methanol, ammonium nitrate, hydrogen, and other downstream products. The government sees it as a key step to utilize domestic coal reserves more cleanly while cutting reliance on imported natural gas, crude oil, and urea.

The proposed scheme is expected to incentivize both public and private sector projects to set up coal gasification plants, supporting India’s targets for energy security and lower carbon intensity.

Further details on eligibility, subsidy structure, and implementation timelines are likely to be announced once the Cabinet clears the proposal.